Interlocking IVA's - Case Study & Testimonial
Situation before IVA
| Amount owed to HM Revenue & Customs | £118,458 |
| Total Unsecured Debt (including the above) | £140,398 |
Approved IVA Solution
| 60 x monthly contributions of £1,000 | £60,000 |
| Introduction of lump sum following sale of property | £50,000 |
| Total repaid by client | £110,000 |
| Dividend to creditors | 69 p in the £ |
Case Study & Testimonial
“We began trading as a business offering lawn treatments in 1995. Trade
fluctuated according to the weather, but we believed that the business
was on the whole profitable. Our business is part of a franchise
agreement, which stipulates the level of income which must be generated
in order to comply with the terms of the agreement.”
“Despite
the fact that trade had been good, we began to struggle to find the
necessary work due to the increased competition and we found ourselves
in debt as we poured money into the business. We then found out that
our accountant had failed to prepare our accounts and we had material
arrears of PAYE, VAT and self assessment tax.”
“HM Customs &
Excise then levied distress for their arrears of £40,172 in April 2004
and the Inland Revenue subsequently issued a County Court Summons in
May 2004 in respect of outstanding PAYE/NIC and self assessment tax,
which amounted to £32,235.”
“We approached another accountant
who put us in contact with Budsworth & Co. As HM Customs &
Excise were threatening to levy distress, proposals for IVAs were
quickly drafted and creditors eventually agreed to our offer of £1,000
per month over 60 months plus a lump sum of £50,000 which was being
generated from the sale of our property.”
“We were not in a
position to be able to meet any of our tax or VAT commitments. Being in
the IVA has given us breathing space to get our finances back on track
and we are now in a position to afford our tax commitments. Our tax
affairs are now up to date and we have been able to continue trading
successfully. None of this would have been possible without the
invaluable help and advice from The Business Debt Advisor.”
The Next Step
The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREE ADVICE LINE 0800 781 0990.
All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. The Business Debt Advisor complies with the Consumer Credit Act and you have the right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.